CONDITIONS IN AUSTRALIA.

Press, Volume LXVII, Issue 20351, 25 September 1931, Page 10

CONDITIONS IN AUSTRALIA.

EXAGGERATED REPORTS. CLASS FEELING AND THE "NEW GUARD." LACK OP CONFIDENCE IN BANKS. Though Australian business conditions did not striko him as being at all as bad as most New Zealandcrs thought them, bitter class feeling in Now South WaI»HJ and lack of confidence in the banL'fj on the part of many of the people made a strong impression on Mr H. E. T. Spanjer, of the advertising firm of McWhannell and Spanjer, in the course of a recent business trip to Sydney and Melbourne. At the same time, he stated when interviewed yes'terday, he had found many businessmen predicting that New Zealand would experience just as bad times as Australia had. "Conditions in Australia are certainly badr—worse than they are here in New Zealand —but; they are far from being as bad as the reports wo have had would make them out to be. People I met laughed when I told them what most New Zealanders thought of the Australian position," said Mr Spanjer. "I was in Australia about 18 months ago, and on this last visit noticed very little difference in the streets of Sydney and Melbourne, which were full of well-dressed people, while the shops were filled with customers. Apart from a few professional beggars I failed to find the great amount of street cadging which has been reported. Of course it is natural that a person who spent his time strolling about the streets would attract attention from cadgers, but to a person engaged in business, as I was, there was very little of that sort of thing.

The Politicians. "It is very liard to ascertain the true nature of business conditions in Australia," lie went on, "but various firms that I had to do business with reported very fair conditions, and in fact one company was busier than it had ever been. Ten leading Australian firms rocontly declared dividends, and in one or two cases the shareholders got a very welcome surprise. I was informed that there was plenty of money in the country, but that the adverso blight of the politician was causing lack of confidence and preventing people from putting it into circulation. This has been magnified considerably by the suspension of the New South Wales Government Savings Bank, and during my stay the air was full of rumours concerning the fate of other banks, though these were immediately discountenanced. "A change of Government, in New South Wales particularly, would largely restore confidence, for at the present time people do not know what Mr Lang may do next. Another big disadvantage to industry in New South Wales is the fact that wages there are 40 per cent, higher than they are in the other States. The result is that several industrial concerns are transferring their factories to Melbourne, which is booming at the expense of Sydney. In faat I was informed in Melbourne, where there is more confidence, that business there was, comparatively speaking, exceptionally good. The Dole and Class reeling. "It is generally recognised that the dole system has brought with it many evils," he continued. "A large number of people do not seem to be keen on working at all. I cannot vouch for it personally, but it is generally believed that many of the people who wait in the lengthy queues to buy tickets in tho State lotteries are recipients of the dole. It is known for a fact that many holders of tho dole tickets have been trading them in for beer and cigarettes, but new regulations Jiava now been drafted by tho Government to put an end to this practice/ . A business friend of mine told me that he had offered work at £2 10s a week and found to two men who were on the dole, but that they had refused it.''

Mr Spanjer was particularly impressed by the very bitter class feeling that existed in New South Wales. <{ lt is a feeling that we can't realise in New, Zealand," he said. "During my B tay a gang of organised Communists made a most brutal planned attack on a Labour Union secretary at the Trades Hall, and also threatened other officials. During a City Council election meeting m the Philip Ward, the federal Labour candidate had a most gruelling reception from the Lang faction. "On the other side there is the organisation known as the <New Guard ' and at a meeting I attended in Sydney the leaders of this body made no secret of what they would do if the Communists decided to take the law into their own hands. There is certainly a very tensafeeling in the air, and at times I had the impression of being on the verge of a civil war, with just a match —Borne action on the part of the Communists—necessarv to start it " The addST GUard ''' W6re really deists, be

Comparisons with New Zealand. "Leading business men in Australia claim that the Commonwealth has turned the corner, and that New Zealand ia going to bo in 6 worse position than S L ar ifn that the rate of exchange _ will g 0 agaiast the Dominion and in favour of the Commonwealth, One thing in favour of the bottom having been reached over there that unemployment has decreased though certainly by a very small rnarThe cheerful way in which the oeonlo were facing their troubles was par£larly noticed by Mr Spanjor. Thdr atS U „ de Was , ve . p from that of many people m New Zealand. The theatres were crowded every niitht and fLT,a 0t J hem ' w > e " u >° »»• pi«ture had been running for five months mT, ,m ? irae «" e ° M « The radio trade was booming in Sydney. Since the suspension of tha cv,,, ings Bank it seemed tSt lacked confidence in the banks to such an extent that they were \S„?W money on luxuries, an d poor people wore to be seen buyh£ £30 radio sets and paying cash for them.